FIRSTGROUP has thrown out a takeover approach that valued the bus and rail giant at up to £1.23 billion.
The Aberdeen-based company had been considering the latest in a series of “unsolicited, conditional proposals” from private equity firm I Squared Capital.
The approach included comprised a cash component 118p per share and a contingent right to up to a further 45.6p per share. The contingent right is based on the outcome of the earn-out that can be achieved by FirstGroup from the sale of First Transit, and the net proceeds realised from Greyhound legacy assets and liabilities.
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However, First Group said announced to the City this morning: “The board, having carefully evaluated the proposal together with its advisers, concluded that the cash component of 118 pence per FirstGroup share significantly undervalues FirstGroup's continuing operations and its future prospects, and the contingent right to up to 45.6 pence per FirstGroup share does not provide shareholders with sufficient certainty.
“Accordingly, the board has unanimously rejected the proposal.”
Shares in FirstGroup have moved little, and around 10.20am were trading at 135.99p, down 0.5 per cent.
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